UKWIR sets out a framework to support asset health policy shift

(by Karma Loveday)

UK Water Industry Research (UKWIR) has released a framework aimed at tackling the lack of a unified approach to quantifying and valuing asset health across the sector.

The collaborative research body said its Common Definition & Calculation of Asset Health Framework provides the first practical roadmap for how asset health should be defined, measured and used, helping water companies build a clearer and more joined-up picture of asset performance over time.

The report observed that a clear understanding of asset condition is essential both for investment and planning within water companies, and as part of the regime of measures and incentives set by regulators. But: “Research and analysis for the UKWIR asset health project showed that the same definition was not effectively serving both uses, and given public and regulator attention on asset health, the framework recommends that the standard definition of asset health aligns more closely with the regulatory definition.”

Other key recommendations included:

• All elements of asset health, including data, metrics and interventions, must have defined owners within an organisation.

• The water industry should move toward a single definition to ensure direct comparisons between companies are possible.

• Companies are encouraged to map their existing asset health structures to the UKWIR framework, making it possible to refine them and share cross-sector learning.

The work has been conducted collaboratively between industry and regulators. UKWIR CEO Mike Rose said: “A particularly positive finding is the fact there is already broad consensus around the recommended definition of asset health, and there is a strong agreement on what good asset health metrics should look like: clear, measurable, comparable and relevant.”

This project aligns directly with policy in January’s Water White Paper. UKWIR said its study “provides the precise metrics needed for the White Paper’s proposed new regulatory regime, giving the sector a shared language to identify and intervene before infrastructure problems take hold”.